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Kaminer Oil, Inc. plans to explore, develop, and produce a block in the Gulf of Mexico. They estimate it will cost $11 million to dismantle

Kaminer Oil, Inc. plans to explore, develop, and produce a block in the Gulf of Mexico. They estimate it will cost $11 million to dismantle equipment and abandon the site in 20 years. If they will be able to borrow money at 6% and the present value factor is .31180. At the end of the first year, what amount will be placed as a credit in the account Asset Retirement Obligation? $__________

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